Solventum (NYSE:SOLV) Reaches New 52-Week High – Should You Buy?

Solventum Corporation (NYSE:SOLV)’s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $88.20 and last traded at $87.64, with a volume of 123414 shares traded. The stock had previously closed at $85.56.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on SOLV shares. Wall Street Zen downgraded Solventum from a “buy” rating to a “hold” rating in a research note on Monday. BTIG Research set a $100.00 price objective on shares of Solventum and gave the stock a “reduce” rating in a research note on Tuesday. Zacks Research upgraded shares of Solventum from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 15th. Jefferies Financial Group began coverage on shares of Solventum in a report on Thursday, September 11th. They issued a “hold” rating and a $80.00 target price on the stock. Finally, Piper Sandler upped their price target on shares of Solventum from $94.00 to $98.00 and gave the company an “overweight” rating in a report on Friday, November 7th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $87.00.

Solventum Trading Up 1.4%

The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.14 and a current ratio of 1.50. The firm has a market cap of $15.04 billion, a price-to-earnings ratio of 9.99, a P/E/G ratio of 9.00 and a beta of 0.25. The company’s 50-day moving average is $74.01 and its 200-day moving average is $73.75.

Solventum (NYSE:SOLV) last issued its quarterly earnings results on Thursday, November 6th. The company reported $1.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.07. The business had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.05 billion. Solventum had a return on equity of 28.01% and a net margin of 18.13%.The firm’s revenue for the quarter was up .7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.64 earnings per share. Solventum has set its FY 2025 guidance at 5.980-6.080 EPS. On average, research analysts predict that Solventum Corporation will post 6.58 earnings per share for the current year.

Solventum declared that its board has initiated a stock buyback program on Thursday, November 20th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 7.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Independent Franchise Partners LLP boosted its holdings in shares of Solventum by 74.2% in the second quarter. Independent Franchise Partners LLP now owns 10,141,066 shares of the company’s stock valued at $769,098,000 after buying an additional 4,320,342 shares during the period. Norges Bank bought a new position in shares of Solventum during the 2nd quarter worth approximately $140,495,000. Boston Partners raised its holdings in shares of Solventum by 101.3% in the first quarter. Boston Partners now owns 3,361,973 shares of the company’s stock valued at $255,554,000 after purchasing an additional 1,691,565 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Solventum by 5.3% during the third quarter. Vanguard Group Inc. now owns 17,121,198 shares of the company’s stock worth $1,249,847,000 after purchasing an additional 867,837 shares during the last quarter. Finally, Balyasny Asset Management L.P. bought a new position in Solventum in the third quarter valued at $42,393,000.

Solventum Company Profile

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration.